10. Burden of proof and penalty for furnishing false evidence
(1) For the purposes of assessment of tax under this Act, the burden of proving that the turnover disclosed in any return filed under section 9, or stock of any goods held by any person are not leviable to tax under this Act or exempt from tax or leviable to tax at a rate lower than the rate notified under sub-section (1) of section 3, shall be on such person.
(2) If any authority under this Act, during the course of any proceeding before it, finds that any person has, with a view to claim that he or any other person is not liable to pay tax on entry of any goods into a local area or is liable to pay tax at a rate lower than the rate applicable, made, furnished or issued any cash-memorandum, bill of sale, delivery note, voucher, declaration, certificate or any other document produced before such authority in respect of such goods, which such authority has reasons to believe that such person knows or has reasons to believe to be false or incorrect, then such assessing authority, may, after holding such further enquiry as it may consider necessary, direct such person to pay by way of penalty an amount equal to the tax payable or additionally payable on entry of such goods:
Provided that before issuing any direction for payment of penalty under this sub-section, such authority shall give to the person concerned an opportunity of being heard against the levy of such penalty.
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